Results of a survey conducted by technology firm Thales Group and Wakefield Research suggest Americans could be easily scared off digital payments if they are victimized following a data breach. Eighty-eight percent said they would discontinue the method should fall prey.
Respondents (by the following percentages) said they would stop using digital payments if:
- Money was stolen from a bank account (70%)
- Unauthorized charges appeared on a linked credit card account (68%)
- Their user name and password were stolen (59 %)
- They experienced increased spam (30%)
Three in five Americans currently use digital payment methods with millennials (74%) preferring them more than baby boomers (50%). The most popular methods were:
- PayPal (74%)
- Apple Pay (11%)
- Google Wallet (7%)
- Android Pay (6%)
- Chase Pay (6%)
- Samsung Pay (5%)
- Venom (3%)
Forty percent of Americans do not feel safe using digital payments when traveling.
Security concerns must be addressed if the industry is to maximize its potential, Thales payment strategy director Jose Diaz said.
“The mobile payments industry needs to take note that their future success is based on trust, and that trust can easily fail if they do not provide the strong protection of their infrastructure, transactions and data that customers expect.”
The Vormetric Survey reached 1,106 Americans via online survey in August.